Cold e-mails are simply emails to people you had no prior relationship with. A cold email can certainly be spam, but it doesn’t have to.
Most investors typically get multiple cold emails everyday, and are unlikely to pay much attention to them. While it is still possible to get investors’ attention with cold emails, it requires a huge deal of luck and a very interesting proposition.
Though cold emailing can be personalized, but they might lack the humane feeling, as emails are usually sent in bulks. Notwithstanding, emails can be automated, saving not just time but expenses too. What matters the most, in the end, is the effectiveness and conversions of this means of communication of your choice.
Here are several things you should be aware of, if you are going to try to raise funds for your startup via cold email.
- Research each target investor before you send an email. Search for people who are somewhat close to you because investors almost always invest in deals near where they live and work. Look for people who know your industry because investors almost always invest in businesses they know. Real investors have track records. Use Google to find out all you need to know about them.
- Plan out the sequence of emailing a pitch. For instance, your first email should be a brief summary that asks permission to send more information. It should be just a few paragraphs.
- Your lead is something specific directed to your target investor. Talk about a article they wrote that you liked, or something they said in an interview, or something somebody said about them in the media. Link that to something related to your pitch.
- Get their attention by following with something you choose carefully about your deal. For example, what’s the first thing you would say in an elevator speech? It might be about market need, or maybe the team you’ve gathered, the magnitude of the opportunity, your secret edge over competitors; it depends on what you choose to talk about. But this, right here, is what is most likely to pique the investor’s curiosity.
- Be sure to give a very quick summary of key information that this investor would want to know. Where, what, how much, etc., all within quick paragraphs.
- Then close by asking for the next step. Ask if you can send a pitch deck, meet, or call them.
The idea is to get creative with cold emails. Each investor outreach effort may take you substantially more time but they will also be exponentially more effective. If you are fundraising for your life-long dream startup,then you need to be sophisticated and be willing to play the long game.
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